Co-Creation for Sustainable Region Translating Global Goals to Local Contexts
~ Co-Creating for Sustainable Communities ~

We create new value through dialogue with people and stakeholders from diverse backgrounds. To this end, we translate global goals to implement in local contexts.

Co-creating sustainable communities is the act of translating global goals into the local contexts for each country and region, creating new value through dialogue with people and stakeholders from diverse backgrounds. We focus on local issues and take action to create new value together with people who support our efforts. In this way, we aspire to be a company that fosters empathy for the community while deepening and expanding human interconnections.

Serving as a Life Design Producer, Supporting the Creation of Well-Being Life Design

AEON MALL facilities create spaces offering abundant lifestyles leading to self-actualization based on physical health, mental health, environmental health, and social health. As a Life Design Producer, we create platforms through our businesses to support Well-Being Life Design.

Accelerate Mall Openings in Priority Areas

We continue to search for and secure properties in high-growth areas, accelerating new mall openings as we aim to achieve a 50-mall network by the end of fiscal 2025.
We intend to achieve further profit growth in our Overseas Business through steady mall openings in priority areas over the next three years.

• Search for and secure properties in areas of high future growth potential, such as Vietnam and inland China
• Strengthen area competitiveness by establishing dominance through new mall openings

New Business Development to Solve Local Issues

We intend to move away from a single mall format to a value creation model tailored to the characteristics of each region, exploring new business opportunities outside the framework of commercial facilities through deeper research into the issues facing each country and region.

• Develop multi-function logistics center business in Cambodia
• Produce new value creation models tailored to regional characteristics

Vietnam Open New Malls in Central Vietnam

We signed cooperation agreements with local governments to secure our mall opening pipeline in central Vietnam, in addition to our agreements in place in the north and south of the country.
We plan to open our first mall in this area in 2024.

Signed a cooperation Agreement with Da Nang City (June 2022)

Began construction on AEON MALL Hue (February 2023)

2024 Grand Opening (Plan)

China Accelerated Mall Openings in High-Growth Inland Regions

Changsha City, Hunan Province, is an urban hub that has continued to experience high economic growth in recent years. AEON MALL signed a comprehensive cooperation agreement with the Changsha City government, and we plan to continue opening new malls in the future.

Diversify Value Offerings Tailored to the Market

In the wake of the COVID-19 pandemic, customer values and lifestyles have changed dramatically.
Amid this change, people no longer look simply for a buying experience in commercial shopping facilities. Customers now search for the value of the experience as a motivation to leave their homes and visit malls.
The basis of this experience is sensory value, or the experiential value obtained through the five senses. Sensory value includes the atmosphere, cleanliness, background music, courteous customer service, and beautiful interior design. These values have a tremendous impact on the customer experience value. The key mission required of developers is how to create a comfortable experience value for customers to enjoy through their five senses.
We strive to improve customer experience value through new sensory value proposals.
And we plan to incorporate this approach in both new and existing malls.

Provide Emotional Value Through Space Management

Incorporate mechanisms to appeal to the five senses for comfort and ease, striving to create facility environments that will become a place of relaxation for our customers

THE OUTLETS SHONAN HIRATSUKA (Kanagawa Prefecture)
OKAMI VILLAGE Open space and terrace seating overflowing with greenery

Improve Profitability Through the Effective Use of Existing Assets

Having revised our former business model built around existing malls, we plan to diversify our revenue models to take into account both traditional lease income and the changing role of brickand-mortar malls.
To use existing assets more effectively, we plan to create new business areas based on the utilization rate of shops and parking lots in our malls, converting underutilized space into new value.
We analyze issues related to each community and each property, clarifying the purpose and nature of the value we provide. Based on this analysis, we implement a proper approach.
For example, we will create new value to motivate customers to visit our malls, enhance our ability to attract customers, and improve profitability. This value takes forms including comfortable outdoor parks, recruiting businesses to the area, and inviting governments to open offices in onsite facilities.

Develop New Uses for Business Sites for More Effective Use

AEON MALL creates new value using the land area of existing malls, mindful of tenant and parking lot capacity.
We add functions to increase the attractiveness of the mall and enhance our ability to attract customers.

Secure Revenue Opportunities Through the Effective Use of Existing Assets

Temporary Facility on the Former AEON Kyobashi Site
FULALI KYOBASHI (Osaka Prefecture)
July 2023 Grand Opening

We are using the former AEON Kyobashi location temporarily until we begin development on a future project.
This temporary usage serves as a preliminary project to build anticipation and publicize the site to promote future development.

Implement Fundamental Business Structure Reforms

While we strive to deepen existing businesses amid accelerating changes in the external environment and in customer values, certain facilities have not responded to these changes sufficiently. The ability of these facilities to attract customers and generate cash flow has been in decline due to sluggish profitability.
We are engaged in increasing competitiveness and improving operational efficiencies within the market area, including investments in revitalization. In addition, we are also moving forward with initiatives aimed at fundamental structural reforms from aspects of real estate and finances.
By fiscal 2025, we intend to implement fundamental structural reforms at several malls.
In fiscal 2023, we will record structural reform losses as an extraordinary loss of approximately ¥6 billion.
Moving forward, we will implement fundamental business reforms designed to maximize future operating income.

Expand Office Complex Development Functions

We aim for local co-creation through stronger collaborations with partner companies via M&A, equity investments, and business alliances. Our goal is to expand into social businesses designed to solve social issues.
We strive to address global issues as local issues, while creating new value together with people who share the same vision to solve each issue one by one. To this end, in March 2023, we entered into an equity and business alliance with Marimo Co., Ltd., a company focused on condominiums and income-producing real estate who shares our philosophy.
We believe we can contribute to sustainable urban reconstruction, which is the objective of the Japanese government’s Location Optimization Plan. We also believe we can be part of building vibrant communities and compact and networked cities by guiding urban functions that include residential functions, medical care, welfare, commerce, and public transportation to urban centers. Driven by this belief, we pursue redevelopment and mixed-use office complex development projects in urban areas, creating the future of community living.

Purpose of the Partnership

~ Co-Create the Future of Living in Communities ~
Create Vibrant Communities and Compact and Networked Cities

Main Initiatives

1）Pursue large-scale, multi-function, mixed-use office complex development
2）Pursue urban redevelopment projects
3）Pursue mixed-use office complex development in urban areas
4）Engage in more advanced use of AEON MALL assets
5）Pursue investment in regions through the Marimo Regional Development REIT

CVC Life Design Fund

In April 2023, we established a new CVC (Corporate Venture Capital). This is not an initiative aimed at future capital gains through investment in startup companies, etc., but rather a growth strategy based on alliances through empathy and co-creation. In addition to bringing together cutting-edge technology and expertise from startup companies for new value through our in-house venture system, we take on the challenge of creating new business value through solutions for local issues and the advancement of mall operations.

Develop Joint Delivery Services to Solve Logistics Issues

Growing logistics challenges include driver shortages, small-lot, highfrequency deliveries, and rising fuel costs. Amid these challenges, we are developing a joint delivery service to provide value to our partner companies, who are mall tenants.
This joint delivery service will handle deliveries from the logistics bases of tenant companies to AEON MALL, other commercial facilities, stand-alone stores, etc., as well as inter-store deliveries and returns. On-demand warehousing services will also be available for partners to use when and as much as necessary.
In the future, we hope to achieve economic and environmental value by standardizing packaging materials and hangers.

Create Sustainable Towns Via Industry-Government-Academic Collaborations

We are actively involved in efforts to contribute to community development. At Koshigaya Laketown, AEON MALL is working with the local government to use of the adjacent waterfront area more effectively.
In collaboration with Koshigaya City, AEON MALL is revitalizing the land near AEON Lake Town, testing and proving a community collaboration system with the University of Tokyo.

Achieve Decarbonized Societies
All malls in Japan to be operated with effectively CO2-free electricity by fiscal 2025, reducing total domestic emissions to zero by the year 2040

AEON MALL formulated the AEON MALL Decarbonization Vision, setting a goal to reduce total CO2 and other emissions in Japan to zero by the year 2040 and playing our part to create decarbonized societies.

Using Renewable Energy

Last year, AEON MALL launched the AEON MALL Machi no Hatsudensho (community power plant) based on low-voltage, distributed solar power generation systems via self-directed transmission. By fall 2023, we increased the number of solar power generation facilities in operation further, supplying renewable energy with low environmental impact generated from approximately 1,390 low-voltage solar power plants in each region to approximately 50 AEON Mall facilities nationwide. Electricity generated by solar power generation systems is equivalent to the electricity consumed by seven or eight mall facilities.

Adopt an executive officer system to separate management supervision from business execution

We introduced an executive officer system in May 2023 to clarify the roles and responsibilities of our organization, increasing the speed of business execution. At the same time, this system ensures the effective monitoring of growth measures and progress toward achieving the numerical targets of our business plans.
In addition to strengthening the supervisory function by separating management oversight and execution, clear definitions of responsibility for business execution and faster decision-making have been effective in advancing our organizational structure, including the training of the next generation of management personnel.